I know that these 2 electronic payment methods are very different.

Of those people that are familiar with both, which do you choose and why???

I understand there is no clawback with Zelle, not sure with Clearnow, do you know??

I can't use Paypal anymore, cause DH says don't fill out the extra paperwork they want to report it. He's afraid it will just cause duplicate reporting & confuse things for our CPA.

Some of my tenants can't use Zelle, it tells them it exceeds their weekly allowed amount. (if they don't have an account tied into it I think) I do know I like it & wish all our tenants used it.

Clearnow has no clawback feature.

The first time a draft is made and there are not sufficient funds there is no charge. The second time, there is a $15 charge. The landlord can opt to have the tenant debited for the charge or they can have their account debited.

Clearnow is mandatory to rent from me. If a draft fails or is “turned off” by the tenant more than once in a six month period they are subject to being terminated.

No need to fear Clearnow. The tenant or landlord has until noon the day before the draft is scheduled to turn it off. There is no charge to turn it off. But if they constantly turn it off, there is no point to having them be unrolled in the service.

1. I've been using Clearnow for many years and it is my favorite rent collection method. Biggest difference for me is that with Clearnow, the set-up is "landlord" initiated and then the payments are withdrawn (or taken as alluded to above) automatically every month. With Zelle, the payments are tenant initiated.

I like landlord initiated payment set-up versus one that is tenant initiated. And once the one-time set-up is done, there is nothing else for me to do each month, accept change the rental amount for their annual anniversary date. Makes doing rent increases that much easier, My track record with a landlord initiated payment method has proven over time to be far more consistent month after month, year after year.

2.Another big difference is that residents who are paying using Clearnow have the option to have their payments reported to a major credit bureau to improve their credit score. Many residents like this option and it then encourages them to continue making sure that their is enough money in their account each month for when the money is withdrawn.

3. This is not a comparison (because I am not familiar with Zelle's customer support), but I do know that over the many years Clearnow has been a sponsor of this site (DirectRentDeposits.com), I have not had any landlord come back to me with any negative comments about Clearnow's customer service. On the contrary, I have heard numerous landlords who say good things about their service and that they appreciate the service and try to get all their residents to convert over if possible.

Lisa -

Clearnow uses ACH (and maybe other networks as well) and ACH can be clawed back.

James - It can only be “clawed back” if the tenants goes to the bank and signed an affidavit claiming it was fraudulently drafted. Since they signed the agreement that is always a “lie”. Clearnow will never allow that person to enroll again- never as it’s an assault against their ethics.

Can’t be enrolled in Clearnow, can’t rent from me. I had it happen once too. The tenant was sincerely sorry and didn’t understand the repercussions, I only agreed to keep her because she enrolled her Mother to pay her rent who I screened and approved.

So yes, it can be done but it takes effort and a willingness to lie- not as easy as a clawback on a credit card or through PayPal.

Wow, thanks for all the great responses.

I do want to start making some type of electronic payment an option.

I cannot do so to the extent I have seen that others have discussed on this board since last time I checked I am not allowed to require it in California.

Dino, our residents prefer the Clearnow so they don’t need to think about it. The system takes it from their account. You don’t need to require it, you can instead advertise it as a service you provide to make it easier for the resident to avoid needing checks, buying money orders, credit card fees, late fees, etc.

dino.

YEARS ago we shifted to autodraft and our lives became sooo much simpler!

No more stress HOPING and WAITING folks would pay their rent.

No more calls and excuses saying they would be late. True.

Our only problem is the occasional NSFs (non-sufficient funds = bounced check) BUT waaay fewer than when we took personal checks. They still have to have the rent money in their bank account.

Accepting a personal check for rent can take 21 days to bounce. You're mostly thru the month before you find out their payment bounced. Autodraft tells us immediately.

I also LOVE the "automatic" idea. Nothing for us to do except the happy dance as the money appears!

Today's consumers LOVE autodraft and expect it. Most don't have checks. Local factories pay by putting their paycheck on a PAYCARD - a debit card such as VISA.

My lease is clear: Rent prices are based on payment by automatic draft from your bank. Handling paper money will result in a $20 per transaction handling fee.

As I write this I'm thinking Jeffrey might put a positive spin on it by saying "$20 discount to use Clearnow."

Gotta keep up with the times. THIS is how payments are done these days. My 35 year old son says he has not written a check since high school.

BRAD

PS I would NEVER go back to a system that requires the res to take initiative to pay - to remember or need a reminder to stop what they are doing, remember a password, decide how much to give the LL this month, and click some buttons.

BRAD

BRAD,

So is the autodraft system you use Clearnow?

If not what alternative do you like?